IDEAS home Printed from https://ideas.repec.org/p/unm/umamer/1999011.html
   My bibliography  Save this paper

A duopoly Logit model with price competition and strategic compatibility

Author

Listed:
  • Jonard, Nicolas
  • Schenk, Eric

    (MERIT)

Abstract

This paper provides an analysis of compatibility decisions with oligopolistic price setting in a duopoly logit model. We consider a sequential game in which firms first choose whether they supply compatible products and then set the price which is charged. The equilibrium compatibility configuration is the outcome of a trade-off between consumers valuation of compatibility and the loss of product differentiation which is associated with compatibility. Finally, it is shown that firms incentives towards compatibility tend to be socially insufficient.

Suggested Citation

  • Jonard, Nicolas & Schenk, Eric, 1999. "A duopoly Logit model with price competition and strategic compatibility," Research Memorandum 011, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:umamer:1999011
    as

    Download full text from publisher

    File URL: https://unu-merit.nl/publications/rmpdf/1999/rm1999-011.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    industrial organization ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unm:umamer:1999011. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Leonne Portz (email available below). General contact details of provider: https://edirc.repec.org/data/meritnl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.